Financing

What is commercial financing?

Financing a property is the method in which individuals and businesses can purchase residential and commercial real estate without the need to pay the full price in cash up front from their own accounts. Financing for non-residential real estate is generally obtained to provide funds for the acquisition, development, and operation of a commercial real estate venture. Commercial financing loans are secured primarily by real estate and related assets owned by the debtor. Assets used to collateralize commercial finance loans, aside from the real estate, may include fixtures, equipment, bank and/or trade accounts, receivables, inventory, general intangibles, and supplies. Documents providing evidence and securing the loan typically include: loan agreements, promissory notes, mortgages or deeds of trust, assignments of rents and leases, financing statements, environmental indemnity agreements, guaranties, subordination, non-disturbance and attainment agreements, estoppel certificates, and other documents.

 

What are the types of Commercial Real Estate Loans?

There are several types of commercial real estate loans, each having their benefits and drawbacks. No matter the type of business you own, when looking commercial financing, you should consider applying for one of the following :

• SBA commercial real estate loans, including 7(a) and Certified Development Company (CDC) 504 loans

• Conventional commercial mortgage

• Commercial bridge loan

• Hard money loan

It is possible to finance your commercial real estate investment project with cash reserves. 

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I can get financing from a bank, why should I choose to work with you?

We understand that middle market companies like yours can get financing from a bank. What sets Stewart Capital Lending apart is the consistent and seamless experience we will provide you with. We are always here to help! Here at Stewart Capital Lending, we're only one email or call away—and we're always happy to support you. Contact us by email or phone to learn more about our financing solutions.

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What if the bank has denied me for a business loan?

Then you are in the right place. Banks hate taking risks, which is bad news for small businesses. However, the team at Stewart Capital Lending trusts and believes in our clients. If your bank has denied you for a business loan, give us a call. We find a way to say "yes!".

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What are the advantages to purchasing commercial property?

You may be considering investing in commercial property rather than or in addition to residential properties. There are some distinct advantages to investing in commercial real estate such as,

1. More lenient lease terms. You are not subject to restrictive housing requirements.

2. Triple net leases. A triple net lease means that the renter pays for everything including building maintenance and property taxes.

3. Longer leases. Often commercial leases are for three to five years, or even longer.

4. Tax advantages. Business property allows some advantageous tax deductions. One of our financial advisors can help you navigate taxes related to your commercial properties.

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How Do Commercial Real Estate Loans Work?

Commercial real estate loans are put toward the purchase of existing or new properties. This financing can be used to develop, construct or renovate a physical property or the land. You can also refinance a loan on an existing commercial property. Examples of eligible property types include: Office space, Building, Business complex, Shopping center, and Retail shops. Most of the time individuals can’t take out a commercial real estate loan. Instead, they’re reserved for incorporated business entities. Some lenders may require the borrower to occupy the space, so if you’re looking to buy property as an investment, be sure to read the fine print. 

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Investing in commercial real estate can prove costly. Thankfully, commercial real estate loans help you pay for these costs. With these loan types, lenders put a lien on your purchased property. If you default on the loan or cannot make payments, the lender can seize the property to recoup their losses. To mitigate the inherent risk of big-money lending, commercial real estate financiers will require a down payment.

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What documents do I need for a residential financing?

This will depend on the type and amount of the loan you are applying for, but there are some basic records all lenders will request. These include income records (i.e. pay stubs for the previous 30 days, the last two years of tax returns, 2 to 3 months of bank records for each of your bank accounts, and any other additional documents that prove your income). You will also need to furnish information about your current debts such as account numbers and monthly payment information.

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How will my credit rating affect my home when considering financing? 

The way you've handled your finances in the past can help predict how you may do so in the future, so lenders will consider your credit rating when you apply for a mortgage or other loan. A higher credit score may help you qualify for better mortgage interest rates, and some lenders may lower their down payment requirement for a new home loan if you have a high credit score.